Thursday, May 1, 2008

How Will You Spend Your Tax Rebate?

Jessica Demczar

Many people around the country are getting a gift from the federal government in the coming weeks. But it's not just Washington that's trying to boost the sluggish economy. Some retailers are offering incentives to people with the checks. Staples is one of four stores in Athens offering extra credit to people who spend their rebates there.

But will these tax rebate checks and incentives really help to stimulate the faltering economy? Ohio University economics professor Richard Vedder says no. "I think dropping a few hundred dollars out of airplanes over everyone's house, which is the equivalent of what we've just done here, can only have a temporary impact on the economy," says Vedder.

Economist Richard Vedder describes the reason for the tax rebates.

And just who will be receiving these tax rebate checks? According to Vedder, the rebates were originally going to go to everyone, but some modifications include more low-income people and exclude more high-income people.

Economist Richard Vedder explains who qualifies for tax rebates.

The Internal Revenue Service website also explains who qualifies for the rebate, as well as an economic stimulus calculator and any basic information about the rebate.

Nikki Brandes, an Athens County resident, says she doesn't think she will be receiving a check. But she says if she were to receive a check, she probably would not spend it in stores, as the federal government is hoping.

See a raw interview with Athens County resident Nikki Brandes as she explains her feelings about the tax rebate checks.

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